1. Rising prices of raw materials put tremendous pressure on the production costs of enterprises. Affected by the increase in oil prices, the prices of major raw materials for luggage, such as polyester cloth, PVC, and PU film, have risen sharply. Due to the increase in the prices of various raw materials, the cost of enterprises has increased by about 20% on average, which poses a huge cost pressure for luggage companies with lower profit margins.
2. The safety hazards and low prices of luggage products have caused the industry to face trade barriers. As people's awareness of environmental protection and safety increases, the quality connotation requirements of luggage products are undergoing qualitative changes, and more attention is paid to the characteristics of environmental protection, safety, and portability. The European Union and other regions have continuously improved the safety standards of luggage products. This year, a new chemical registration, authorization and evaluation system called REACH was proposed. This system has strengthened the control of chemicals and products containing chemicals in the EU market. Bag products entering the EU must provide a more stringent test certificate than the current chemical content test. The improvement of EU safety standards has not only brought trade barriers to the export of luggage products, but also increased the inspection costs of enterprises.
3. The lack of independent brands and a systematic production model is the "congenital deficiency" of the luggage industry. At present, most of the luggage produced in our country belong to the middle and low grade, and there are few products with high value-added and high-tech content. The unit price of exported luggage is only a fraction or even a tenth of that of imported luggage; corporate intellectual property protection awareness is weak and counterfeit More, less innovation, more large-scale goods, less own brand. In the international market, my country’s own-brand luggage is almost blank, lacking a brand with personality, prospects for expansion and strength. Although domestic luggage production has a large scale, it lacks an overall systematic production model, and self-employed cooperative production still occupies a large proportion. This is extremely disproportionate to China’s status as a world luggage production base and will definitely restrict luggage. The long-term development of the industry.